Question

an example of a period cost would be the
a. materials purchased to manufacture the product.
b. property insurance paid for the manufacturing facility.
c. salary to the factory supervisor.
d. salary of the ceo.

Explanation:

Period costs are non-manufacturing expenses tied to a time period, not product production.

• Option A: Direct material, a product cost.
• Option B: Manufacturing overhead, a product cost.
• Option C: Manufacturing overhead, a product cost.
• Option D: CEO salary is a corporate administrative cost, a period cost.

Answer:

D. Salary of the CEO.